Manufacturing Overview – BOMs and Routings

Manufacturing Overview – BOMs and Routings
Dynamics GP Manufacturing Overview – BOMs and Routings

Main This Powerpoint is based on information contained in the Dynamics GP Manufacturing Training manual. The full training manual is available in PDF format. This documentation is located on the ‘Common’ drive in the GP Dynamics folder.

BOM Creation and Maintenance
Manufacturing>Cards>Bill of Materials The BOM Entry window is the main window in the Manufacturing Bill of Materials module. Use this window to: • Enter information about bills of materials and their components, such as: names, categories, and default sites for components and finished goods. • Indicate if all the components in the bill of materials should be backflushed − that is, if accounting processes should be based on the assumption that the components used on the production floor exactly match those in your bills of materials. • Review bills of materials and to modify existing bills of materials. Continued next slide…

BOM Creation and Maintenance cont…
BOM Entry Window Continued next slide…

BOM Creation Steps Item Number Enter or select a part number. The parent part selected must have a status of Make or Either. BOM Type Accept the default BOM Type (Manufacturing) or select another. If you select archived or configured, enter a name for the bill of materials. BOM Name If you are defining an Archived or Configured bill of materials, enter or select a unique name for the bill of materials. You do not have to enter a bill of materials name for Manufacturing, Engineering, or Super bills of materials because you can create only one of each of those kinds of bills of materials for each item. Continued next slide…

BOM Category Accept the default BOM category or select another. Regular − This is a basic BOM. This is the most common category of BOMs used. Phantom − This is assigned to a bill of materials for a subassembly not stocked as an inventory item. If phantom bills of materials are created, you do not have to create separate manufacturing orders for the production of the subassembly items needed for use in parent parts. When creating the table the components necessary to build the leaves also appears on the picklist. Changing from a Regular BOM type to a Phantom BOM type and visa versa is as easy as selecting the new BOM type from the drop-down list and saving the changes. Continued next slide…

NOTE: If creating a bill of materials for a subassembly and you do not want to have to create separate manufacturing orders for the item when it is needed for higher-order assemblies, be sure the category is phantom. There is not a setting in the system to define an item as a phantom. Only the BOM can be defined as a phantom. Continued next slide…

Rev. Level Revision Level history can be manually maintained for changes made to the BOMs. The lookup next to Rev Level allows you to select a previously saved revision level and to view it in the BOM View window. Manufacturing Orders cannot be created using historical revision levels. But, historical revision levels can be copied to create an Archived BOM type. Effective date Accept the default entry or enter another. This is the date that the BOM becomes effective. Qty to Build Enter a quantity and tab off this field to have the BOM cost and component quantity needed to build that quantity be refreshed. This will generally be one (1) for VVF. U of M This displays the base unit of measure for this finished good. Continued next slide…

Default Sites Select the arrow to open the Bill of Materials Defaults window. This allows you to enter the Default Issue From site and the Default Issue To site. The Default Issue From site is the inventory site where components are taken from. The Default Issue To site is the first work center which components are delivered to. Override the default sites on a component by component basis, if needed. Backflush Determine whether to backflush all components in this bill of materials. Backflushing means that the component quantities are not issued to work centers, but are accounted for when a manufacturing order associated with this bill of materials is closed. BOM Cost If the finished good is a standard cost item, the standard cost is displayed. If the finished good is for an actual cost item the cost being displayed is from the component cost layer (not the Actual Cost from the Item Card). To add items to the bill of materials, select the green plus sign. This enables the right side of the window where component detail can be added. Choose the Component lookup button. Select an item to add to this bill of materials. Standard Cost components can be added to a bill of material to make an actual cost finished good item. The standard cost of this component is used to calculate the finished good's actual cost. You are not allowed to enter an actual cost component to a standard cost finished good bill of material Continued next slide…

Adding a Component Enter or select the item that has the bill of materials you want to add components to. The manufacturing bill of materials is displayed, but you can select any other one for the selected item. 1. Select the plus sign directly above the graphical view to add a Component to the bill of materials. 2. Select the first Position Number. Subsequent line items will default incrementally based on the setting in the BOM Preference Defaults window 3. Select a BOM Type − Manufactured, Engineering, Archived, or Configured. If Archived or Configured is selected, enter or select the appropriate BOM Name. This is only necessary if you have selected a subassembly or phantom to be added as a component. 4. Enter the Quantity needed of this component or subassembly to produce one finished good. The Extended Quantity is calculated based upon the Quantity entered to make one finished good plus the Fixed quantity. The extended quantity is also updated if the finished good Qty to Build is other than one. The fixed quantity will normally be zero. Continued next slide…

– U of M − A different unit of measure other than base can be used when entering component quantities necessary on the BOM. – Base U of M − Displays only the Base Unit of Measure for the component item. – Fixed Quantity − The quantity of the component item that is required for every manufacturing order, regardless of the order quantity. – U of M − Unit of measure selected to represent the fixed quantity. – Unit cost − Standard cost of the component item or next cost to be used for the actual cost item from the purchase receipts cost layer. – Ext. Cost − Component extended cost calculated using the Extended quantity multiplied by Unit Cost. 5. If the line item's Issue From and Issue To site are different than the defaults already defined, they can be selected for each line item. – Available Quantity − The quantity Available for this component at the selected Issue From Site. 6. Enter or select an In Date, the date when the component begins to be an effective part of the bill of materials. If none is specified, the addition of the component is effective immediately. Continued next slide…

7. Enter the Out Date, the date when the component is no longer effective on the BOM. The In and Out dates are used to determine if the component should appear on the picklist and if the component should be included in the standard cost of the finished good. – Shrink % − Enter the amount to be calculated for this component item. The calculation for shrink is: Shrink quantity equals 1 / (1 − Shrink percentage) EXAMPLE: Assume the BOM line quantity is 20 with a 15 percent shrink value entered for this line. The quantity that appears on the picklist when creating a manufacturing order for a quantity of one: 20 * (1/.85) equals 24 Continued next slide…

– Lead Time Offset − This is entered in Days, it represents the number of days MRP plans for suggested Purchase orders (buy items) or suggested Manufacturing Orders (make items). The next option Offset From: allows you to choose a few options to have the days offset from MO Due Date or MO Start Date. If the MO Due Date is selected, you cannot enter a negative value. EXAMPLE: Assume the lead time offset for a component is set to minus three days from the MO Start date. When the Manufacturing order is created and the picklist is built if the MO Start date is July 1 − the required date for this component is July 4 (three days after the manufacturing order has begun). – Floor Stock − Select if the component quantity should be taken from floor stock. Floor stock items are items you do not want to count or issue. If an item is chosen to be floor stock, the MO Receipt functionality debits the floor stock expense account instead of the finished good's inventory account. The expense account is defined in the Manufacture Order Preference defaults window. Continued next slide…

NOTE: The unit cost of the floor stock items used on a BOM is not included in the cost of the finished good. – Backflush − If selected, component usage of this specific item is backflushed. You do not have to issue backflushed components to manufacturing orders; instead, the inventory quantities are adjusted to reflect usage of the materials when the manufacturing order is closed. – Alternate − Indicates that this component item can be used as an alternate for another item in the bill of materials. Selecting this option indicates that this component is not normally used in production except as a substitute for another component in the bill of materials. NOTE: MRP does not recognize Alternate items on a BOM. Continued on next slide…

– Eng Approval for Substitution − This is available only if Alternate is selected. If selected, engineering approval is required before this item can be substituted into the bill of materials. – Actual Consumed Check − If selected, the exact component quantity must be used when making the parent item. Do not use this option because it eliminates the possibility of any quantity variance for the component when a manufacturing order is closed. You cannot close a manufacturing order unless the amount of each component consumed for the manufacturing order exactly matches the bill of materials quantities. – Single Lot Only − Select if all of the lot tracked component quantities for an item for a manufacturing order must be taken from the same lot. – Alternate For − Enter or select the component in the bill of materials for which this item can be used as a substitute. – Assigned Alternates − This is not available unless alternates have been assigned to the displayed component. Continued next slide…

– Reference Designators − Choose the arrow next to the reference designators to open the Reference Designator Assignment window. This window allows you to enter the reference designators for this component. – User Defined fields − Two lines of additional information can be stored for each component item. The User Defined Labels can be entered in the BOM Preference Defaults window (TOOLS→SETUP→MANUFACTURING→SYSTEM DEFAULT→BILL OF MATERIALS). – Change Date − Displays the date that the most recent changes to information about this component for this bill of materials were made. Changed By − Displays the user ID of the person who most recently changed the information about requirements for this component in this bill of materials. Continued next slide…

Accounting for By-Products in a BOM Some manufacturing processes result in by-products, secondary products that are produced when a primary product is produced, usually at a predictable rate. Use the BOM Entry window to account for the by-products produced by your processes. To do this, add the item number for the by-product to the bill of materials for an item, expressing the amount of by-product produced as a negative number. EXAMPLE: Suppose a metal fabrication business produces one of its items by cutting shapes from sheets of metal. The metal that is left over from the process is a by product that the business sells to a recycling center. Past experience shows that for every assembly cut from the metal approximately one pound of scrap metal is produced as a by product. To reflect the by product amounts produced the bill of materials for a single assembly would include an entry for minus one pound of by product. When a manufacturing order based on that bill of materials is closed data collection material transactions adds one pound of by product to inventory for each assembly .

BOM Inquiries and Reports
BOM View INQUIRY→MANUFACTURING→BOM VIEW Continued next slide…

BOM Inquiries and Reports continued
Use the BOM View window to view bills of materials in your system. The BOM View window is helpful in a multi-user environment because it allows users to see information without locking bills of materials records. Several users throughout the organization can simultaneously view the same bill of materials with the BOM View window without locking the bill of materials record. Viewing Components in Bills of Materials To perform Where Used Functionality: 1. Open the BOM View window (INQUIRY→MANUFACTURING→BOM VIEW). 2. Select the Item Number you want to view. Note, if you select a Buy item the Where Used button is selected automatically and the graphical portion of the BOM View window displays all finished good items that contain the buy component. Continued next slide…

Bill of Material Reports REPORTS→MANUFACTURING→BILL OF MATERIALS→REPORT OPTIONS Continued next slide…

Basic/Detailed BOM Report This lists detailed information about a bill of materials for an item. It lists all components for the item, including the quantity required by the bill and the cost of the component. Basic/Detailed Where Used Report This shows detailed information about where a component part is used. It lists the: • Parent part item number and description. • The bill of materials level, cost, and quantity. • The cost of the component part. BOM Summary Report This lists the component part item numbers and descriptions, along with quantities and costs. Loose Item Report This generates a list of component items not included in any bills of materials. Basic BOM with Standard Costs Report This includes information about the material, machine, and labor costs, and the associated overhead costs, of a standard cost made item.

Manufacturing Calendar
Manufacturing>Setup>System Defaults> Calendar FIGURE 4.2 The calendar shows which days the manufacturing process is running. This feature enables the designation of: Weekends, Holidays, Any day as down days. This information is required to determine available resources when scheduling manufacturing orders. The shop calendar is also used to determine proposed release dates for MRP Planned Purchase Orders and proposed start dates for MRP Planned Manufacturing Orders. The settings entered in the Shop Calendar window are default entries in the work center calendars when they are created. Any subsequent changes to the Setup Calendar do not roll down to the work centers. HINT: Use the Shop Calendar window when initially setting up company information. Then, make calendar changes in the individual work center calendar to accurately reflect down days for employee and machine capacity planning. NOTE: Only weekend down day settings from the system calendar default into newly created work centers. Weekday down days must be set manually for each appropriate work center. In the Sales Order Processing module, you cannot select a down day as a line item requested ship date or an in-house due date if the preference in Sales Orders to check for down days is selected. Continued next slide…

Manufacturing Calendar continued
Click on a date to toggle on or off.

Manufacturing Sales Order Preferences
Sales>Setup>Sales Order Processing>Additional>Manufacturing Sales Order Prefs Continued next slide…

Manufacturing Sales Order Preferences
Enable Manual MO Generation If marked, users in your organization will be able to start manufacturing orders from sales order entry processes, but manufacturing orders won’t automatically be created. Enable Silent MO generation If marked, manufacturing orders automatically will be generated to build inventory items needed to fulfill sales order quantities that exceed inventory quantities. For example, if a customer orders 2,000 widgets but only 500 are available in inventory and this option is marked, a manufacturing order automatically will be started to indicate that 1,500 widgets need to be built.

Labor Codes Continued next slide…
Manufacturing>Cards>Labor Codes Labor Code Enter or select a labor code identifier. Use Labor Code for Outsourcing This is available only by selecting Allow Outsourced Labor Codes in the WIP Preference Defaults Window. Select this option if the labor code is used for outsourced sequences. NOTE: You cannot clear this option if the labor code is part of any operation,or planning,or working routing. Also, you cannot select this option if the labor code is the Setup Labor Code for any planning or working routing. Description Enter a brief description of the labor code. Enter the accounts used for tracking labor overhead amounts. Accounts specified are credited when data is collected and when backflushing is done; the machine work-in-process (WIP) accounts are debited. Note that the Labor Applied field is required. NOTE: Changing a labor cost does not affect a periodic-valued made item standard cost until a rollup or revalue function is performed. Continued next slide…

Labor Codes continued Labor Code entry screen Continued next slide…

Labor Codes continued Labor Code Overhead Cost Effects
If a dollar amount per hour is entered, the amount is added to the manufactured item total cost by including the value for every hour of labor. If a percentage per hour is entered, the labor fixed overhead is calculated by multiplying that percentage by the labor code's shop rate. That value is then added to the manufactured item total cost by including the overhead value for every hour of labor involved in the manufacturing of an item. If a dollar amount per piece is entered, the amount is added to the total cost of every manufactured item processed by the work center operation that has that labor code. If a percentage per piece is entered, the percentage is calculated by the labor code's shop rate and then added to the total cost of every manufactured item processed by the work center operation that includes the labor code. Labor Code Setup Effects The Manufacturing Order process uses the labor code setup information to calculate costs associated with producing an item. The shop rate is used if the Auto-backflush Labor check box is selected during the Operations setup process. Labor Codes are linked with a particular Pay Code in the employee master file.

Machine Codes Manufacturing>Cards>Machines
A machine is any tool, device, or implement used during the manufacturing process. There are a variety of options for tracking machine operating costs and warranty information. An unlimited number of machines may be entered and tracked. Machines can also be used as a capacity planning method. Continued next slide…

Machine Codes continued
Machine definition window. Continued next slide…

Machine Codes continued
The Machine Code contains data similar to the Labor Code in previ0us slides. VVF costing information is not expected to be generated by Machine Codes at this time so this Code is not further discussed. Although some degree of maintenance tracking is available, this feature is not capable of extensive machine maintenance record keeping, which is better handled by a third party add-in.

Work Centers Work Centers
A work center is a place where production work is done and can be: •A person •A single machine •A collection of machines •A cost center •An entire plant Machines and employees are the main components of work centers. By dividing the organization into functional units for cost calculations and resource planning, a comparison can be made on the profitability of various aspects of the business. The level of data tracking determines how the work centers are set up and the collection needed to effectively run a business. For example, to only track the production part of the business, add production work centers only to accomplish data collection needs. HINT: Start with fewer work centers and add more levels as you become familiar with the Manufacturing Series product. Continued next slide…

Work Centers continued
Manufacturing>Cards>Work Centers>Setup Continued next slide…

HINT: When a work center is created, a site record must be created. When a site record is created, a work center does not need to be created Work Center Identification Use the Work Center Setup window to create basic work center records, specifying the number of shifts, the hours per shift, and so on. Once the basic work center is defined, use this window to add employees and machines to the work center. Assigning employees and machines to a work center is not required – this feature is not available since VVF does not use the HR/Payroll module within GP. The required fields for this window are: Work Center ID Enter or select a work center identifier. Description Enter a brief description of the work center. Continued next slide…

Number of Shifts Enter the number of shifts this work center operates each day. The number of shifts multiplied by the hours per shift cannot be greater than 24. This displays the effective capacity of the employees assigned to this work center. It represents the number of hours of work each employee in the work center can accomplish. An employee's effective capacity is the number of hours the employee works multiplied by the employee's efficiency percentage. An employee who works ten hours and has an efficiency percentage of 90 percent, for example, has an effective capacity of nine hours. Employee - Effective Capacity This field located below the Employee scrolling window is the sum of the effective capacity of all employees in that work center. Adjust this amount if needed. Employee - Overloaded % EXAMPLE:If Employee - Effective Capacity for the work center is 100 hours and the work center still completing training activities, consider setting the Employee - Overloaded %to 90 percent. Then when 90 percent of the work center's capacity is used a warning appears in the CRP (Capacity Requirements Planning) module that the work center is near its limit.

Employee - Overtime % Enter the percent of overtime allowed for employees in this work center. This field is reference-only, and the value entered is not used in any calculations. This displays the effective capacity of the machines assigned to this work center. Effective capacity represents the number of hours of work the machines in the work center can accomplish. A machine's effective capacity is the number of hours the machine works multiplied by the machine's efficiency percentage and the machine's utilization rate. EXAMPLE:If a machine is available for ten hours and has an efficiency percentage of 100 percent and a utilization percentage of 90 percent it has an effective capacity of nine hours. The machine is expected to accomplish nine hours of work in each ten hour shift. The Machine - Effective Capacity field located below the Machine scrolling window is the sum of the effective capacity of all machines in that work center. Adjust this amount if needed. Machine - Overloaded % Enter the percent of the Machine - Effective Capacity that reflects the maximum amount of machine work that can be scheduled into this work center before it is flagged as overloaded. Use this field to adjust the amount of work scheduled in this work center. EXAMPLE:If the Machine - Effective Capacity for the work center is 100 hours, but the machine is old and prone to breakdowns, consider setting the Machine Overloaded % to 85 percent. When 85 percent of the work center's effective machine capacity is used, the CRP (Capacity Requirements Planning) module warns that the work center is near its limit. Enter the percent of overtime allowed for machines in this work center. This field is reference-only. The value entered is not used in any calculations.

Routings Continued next slide…
Routings provide information on how the product moves through a manufacturing plant, from raw materials to the initial, intermediate, and final processes. A routing is a complete set of instructions detailing how to create a particular item. Routings include: Operations to be performed Scheduling sequence Machines and work centers involved Hours required for set up and run times Carefully consider the level of detail needed in routings, including both the level of instruction employees need to do their jobs and the amount of maintenance work required for detailed instructions. Before routings are entered, determine if all steps for a procedure are to be included in one large sequence or in several smaller sequences and if a separate sequence is to be written for each machine, or if all machines are grouped together as a work center. When working with routings it is important to have an understanding of the following concepts: Planning and Active Routings - When a manufacturing order is created a manufacturing, or active, routing is generated which lists each step in the manufacturing process. The manufacturing routing is a snapshot of the planning routing record except the run time for each step is multiplied by the number of units to be built. Routing Names - Make items are allowed to have more than one routing. The routings are distinguished by name. Name routings consistently with a naming convention (such as Primary and Alternate, or use the item number as the routing name). Continued next slide…

Routings continued Backflush - It is possible to backflush labor time and machine time. When either is selected to backflush, no actual labor and/or machine time is collected to compare to standards. Instead, the system assumes the actual time needed to do any backflushed sequence is the same as the standard (for example, the amount of time in the Planning Routing) In addition, the creation and maintenance of routings is made easier by: Operation Codes Routing Copy Capability Pointer Routings Continued next slide…

Routings continued Manufacturing>Cards>Routing Entry
Continued next slide…

Routings continued Use the Routing Sequence Entry window to complete most procedures for defining and changing routing records. Each routing created has at least two parts: a header record, and one or more sequences. Create a header routing first, and then create the sequences attached to it. A routing sequence is the smallest part of a routing. It includes information about: • How and where a task is completed to build an item. • The labor codes and machines needed to complete the task. • The time needed to complete the task. Setup, Queue, Move, Cycle, Labor, and Machine times are used as follows: • Scheduling: Setup Time, Cycle Time, Queue Time, and Move Time • Costing: Setup time, Labor Time, and Machine Time • Work Center Load: Setup Time, Labor Time, and Machine Time Continued next slide…

Routings continued Continued next slide…
Creating a Router Header Record Manufacturing>Cards>Routings>Routing entry>Zoom on item number Continued next slide…

Routings continued Enter a revision level, if needed. The field is informational only and is not automatically updated if you change the routing record. The Primary Routing designation determines which routing is included in Standard Cost rollup and revalue for periodic valued items. Select the routing type. Several options are available, but only released routings can be used for manufacturing orders. Routing types include: • Archived - For routings that are obsolete. • Not Released - For routings that are not yet ready for use in production. • On Hold - For routings that have been temporarily suspended. • Released - For all routings that might be used in production. To base labor and machine time information on the time estimates for the sequence, using the numbers entered in the routing rather than figures from the production floor, you are using back flushing. Backflushing is required when not using Work in Process (WIP) for data collection, or when using quick manufacturing orders. Continued next slide…

Routings continued Work in Process: If you are not using Work In Process to enter information about the amount of labor or machine time used for the sequence, select Auto-Backflush Labor, Auto-Backflush Machine, or both. When a manufacturing order based on the planning routing is closed, the amounts for labor or machine time, or both, are based on the entries in the Routing Sequence Entry window. Quick manufacturing orders: When using quick manufacturing orders, select the Auto-Backflush Labor and the Auto-Backflush Machine options. The system calculates machine and labor time based on routing sequence times entered in the Routing Sequence Entry window. Continued next slide…

Routings continued The first step in creating the routing sequence is to enter or select the Work Center where this sequence takes place. Enter or select the operation code (op code) for this sequence. Clicking the lookup button on the Work Center Opcode field causes only operations that have been linked to the work center to be available. WIP Output per MO Start Quantity Enter the number of items per finished item expected from this sequence. This calculates the default WIP values for shipping items to and receiving items from an outsourced vendor. Drawing Group Select to attach electronic drawings, prints, or schematics to sequences. QA Sequence Select if the sequence is an inspection or testing step. Selecting the option is informational only, and does not affect any processing or transactions. Continued next slide…

Continued on next slide…
Routings continued Auto-Backflush Machine / Auto-Backflush Labor Auto Backflush credits the Labor or Machine Applied account, and then debits the appropriate Labor or Machine WIP accounts associated with the item on the Manufacturing Order. It credits the WIP accounts and debits the Labor and Machine Inventory accounts associated with the Item on the Manufacturing Order based on the standard rate associated with the Labor Code or Machine multiplied by the Labor time or Machine time. Overheads are processed in a similar manner. Continued on next slide…

Routings continued Setup Time
Enter the hours required to prepare the work area for this sequence. This time is used in determining the correct costing for the item. This is also used for scheduling the MO. Set up time is calculated per sequence not per piece. Labor Time Enter the hours required for an employee to complete this sequence for one item. This is used in determining the correct costing for the item. Machine Time Enter the hours of machine time required for completion of one item in this sequence. This time is used in determining the correct costing for the item. Queue Time Enter the hours (per sequence) items must wait before beginning the process. This time is used when scheduling the MO. It is a per sequence time not per piece calculated time. Move Time Enter the hours required to move an item to the location for the next sequence. This is used when scheduling an MO. The time needed is calculated on a per piece basis. Continued next slide…

Routings continued Cycle Time
Enter hours required for each unit in this sequence. This is used when scheduling an MO. The time needed is calculated on a per piece basis. # Of Employees or Crews; # of Machines Enter the number needed for this sequence. This is informational only, and is not used when manufacturing orders are scheduled or when capacity requirements are calculated. The calculation for MO Scheduling is: Setup time + Queue time + (Cycle time x Quantity) + (Move time x Quantity) =Total sequence time To have the next sequence begin after a certain number of units or a certain percentage of units are through the current sequence, enter either the Percentage Next Start or the Quantity Next Start must be completed. If blank, the next sequence begins when this sequence is complete for the entire order quantity. If another sequence can run simultaneously, enter the sequence number in the Concurrent Sequence box. Next Sequence Run Enter the number of the Next Sequence Run, if needed. Each routing must have at least one sequence; add as many sequences to a routing as required. Continued next slide…

Routings continued Last Sequence Scheduled for a Day Option
Select if, at the end of the day, no other sequences are completed. Run Time for One Piece This displays the amount of time needed to produce one piece, including set up time. Time for Every Additional Piece This displays the amount of time needed to complete this sequence for the second and subsequent pieces. Most updates to planning routings can be made in the Routing Sequence Entry window. However, routings can be changed in other ways. For example, renumber routing sequences, copy and delete ranges of routings sequences, and create and use pointer routings.

Operation Codes Define operation codes associated with work center records and use operations to create records that can act as templates for routing sequences. If several routings in a work center have similar steps for setting up a machine, create an operation code for that task. Later, select operation codes for the work center and adjust the information slightly for different routings. To Create the Operation Code 1. Enter or select a Work Center. 2. Enter an Operation Code to be a unique identifier for this operation. 3. Enter a Short Description of the operation code. 4. Enter the amount of Time needed for setup, labor, machine, queue, move, and cycle times. 5. Enter or select Labor Codes for Setup and Run Labor. 6. To have labor or machine costs for this operation auto-backflushed, automatically added to the costs of the project without requiring data collection, select the Auto-Backflush options. Continued next slide…

Operation Codes continued
7. If a machine is needed for the operation, enter or select the Machine ID. If the machine has not been assigned to the work center, an alert message appears, asking to use the machine anyway. Yes adds the machine to the operation. No cancels the selection. 8. Attach drawings, schematics, multimedia files, or other graphic files to the operation definition using the Drawing Grp. field. If attaching graphic or other media files to operations be sure the computers have the appropriate viewing software installed. Paths to the viewing applications must be established for each computer used to view the files. 9. To set up User-Defined fields for work centers, enter values in those fields. 10. Click Insert to link the operation to the work center record. Entries are saved automatically when added to the scrolling window Continued next slide…

Manufacturing>Cards>Routings>Operations. Operation Code 30 is being added. Once the appropriate information has been entered, it will be Inserted into the list. Continued next slide…

Effect of using a Work Center ID in a Routing. WC100 was selected as the Work Center ID. Time and Costing data was automatically populated.

Routing Inquiries Manufacturing>Inquiry>Routings>View
Use the Routing View window to view basic information about a routing. Use the window to open the Routing View Close-up window to view detailed information about a routing sequence. Continued next slide…

Routing Inquiries continued
Manufacturing>Inquiry>Routings>Mfg/Lead Times Manufacturing Times selected Continued next slide…

Routing Inquiries continued
Manufacturing>Inquiry>Routings>Mfg/Lead Times Lead Times selected

Diagram of BOM/Routing/Manufacturing Order Process

Pointer Routings Pointer routings are special routings that can be used within other routings. For example, suppose the last procedures in your production processes are to label items, inspect them, and package them. You can create a pointer routing that includes these three sequences, and then add the pointer routing as the final sequence to routings for all items that require these three final steps. Pointer routings provide some special advantages. They can help you define routings more quickly, and they can help to ensure that no final steps are accidentally omitted. Pointer routings also can be helpful if you need to update your processes: a change in a pointer routing can be reflected automatically in all the routings that include the pointer routing. You can create as many pointer routings as you like, so you can create various pointer routings for various situations. For example, an electronics manufacturer might use one pointer routing for items that are to be packaged in boxes, and another pointer routing for items that are to be packaged in tape-and-reel packaging. Continued next slide…

Pointer Routings continued
Manufacturing>Cards>Routings>Ptr rtg creation Creating pointer routings, a series of routing sequences that can be added to several routings, is a two-step process. First define a header record for the pointer routing; then add sequences to the pointer routing. Continued next slide…

NOTE: The Use Pointer Routings option in the Routing Preference Defaults window must be selected to use pointer routings. To Create the Header 1. Enter a name for the pointer routing. 2. Enter or select the Work Center ID and Operation Code for the first sequence in the pointer routing. Continued next slide…

To Add Sequences to the Pointer Routing 1. Open the Pointer Routing Edit window. Manufacturing>Transactions>Routings>Pointer Edit Continued next slide…

2. Enter or select the Name of the Pointer Routing. Information about the first sequence for the pointer routing is displayed in the first line of the scrolling window. 3. Enter or select the Work Center ID and Operation Code for the next sequence in the pointer routing. 4. Click Insert to add the sequence to the scrolling window. 5. Repeat these steps until the entire pointer routing sequences have been added to the scrolling window.

To add a Pointer Routing to a Routing you choose the work center and operation code combination used here, the pointer routing sequences are added to the routing. As an example, the below Pointer Routing was created. Note that the “first” Opcode will be 30. Contineud next slide…

In the second step, an additional Opcode was assigned to the pointer routing. Continued next slide…

The pointer routing was added to a regular routing by selecting the Work Center ID (WC100) and the Work Center Opcode (30) created in the pointer routing header two slides back.

An additional sequence (410) was automatically added to the routing as shown in the below routing view. From Pointer routing

BOM and Routing Setup Steps
Pre-conditions: Inventory items have been setup. Initial Manufacturing setups have been completed. The Chart of Accounts has been setup. Create a new BOM Cards>Bill of Materials Create Labor Codes Cards>Labor Codes Create Machine Codes (n/a) Create Work Centers Cards>Work Centers>Setup Setup Work Center Calendars Cards>Work Centers>Calendar (as needed) Create Operation Codes Cards>Routing>Operation Codes Create Pointer Routings Cards>Routings>Ptg Rtr Creation Add Operation Codes to Transactions>Routings>Pointer Edit Pointer Routings Create Routings Cards>Routings>Entry Rollup Standard Costs Cards>Inventory>Standard Cost Changes

Standard Cost Changes Manufacturing >Cards> Inventory>Standard Cost Changes Use the Standard Cost Changes window to change the standard costs of raw materials, subassemblies and finished goods. Continued next slide…

Standard Cost Changes continued
Rollup - A system program that calculates the value for each of the nine buckets based on information contained in each item's BOM and Routing. HINT: Use the Standard Cost Changes window for most standard cost activity. Using the Roll Up and Revalue window only for infrequent changes is recommended. Proposed Costs The rolled up costs created by using the Standard Cost Changes window. Revalue - A system program that replaces each item's standard cost with the rolled up value (either its pending costs or proposed costs). From an accounting standpoint it is desirable to revalue inventory as infrequently as possible.

Manufacturing Overview – BOMs and Routings

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Manufacturing Overview – BOMs and Routings

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